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Why Rent-to-Own? |
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1.
Ownership of your home!
2. No massive up-front down payment! $1000 + Rent moves you in!
3. No option fees! 100% of all deposits credited to your down payment!
4. Rents & sales prices based on current market rents and
sales, not projected values!
5. $100 monthly credits, just for paying your rent on time and handling
minor maintenance!
6. We'll reimburse you for 3 months of legal
credit repair!
7. Seller assistance at closing if needed! |
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How Does Rent-to-Own Work? |
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1.
You apply
to our rent-to-own program.
2. You rent the house.
3. We help you repair
your credit.
4. Your security deposits and other credits build into a
sizable down payment.
5. Your on-time rental payment history of one year or more makes you
look good to lenders.
6. We help you get a mortgage on the house.
7. You cease to be a renter, and instead become a home owner! |
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Do I Need Good Credit? |
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No! We don't care about your
credit scores. We will verify your employment, rental
history, and check your criminal history, in order to guage your
risk, decide on any additional security deposit requirements,
and
to ensure we do not introduce criminals into the community. |
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How Much is the Deposit? |
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Your initial deposit is only $1000!
This will take the property off the market for up to 2 weeks, while we
verify your employment, check your rental
history, and check your criminal history. Once we have accepted your
application, it's just a matter of
paying your first month's rent to move in.
$50 of the deposit is a non-refundable application fee. If your
application is rejected, or you choose not to rent the property after
your application has been processed, $450 will be refunded to you at
the address listed on your application. |
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When Do I Start Owning the
House? |
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Your
initial deposit is the first step towards owning the house!
The initial deposit, security deposits, and maintenance/on-time payment
credits are all placed into an account, specific to your property, and
when you buy the property, it is all credited as a cash down-payment at
closing! |
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Is There Any Way to Get
Cheaper Rent? |
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No.
The rents we advertise include a $100/MO credit for paying your rent on
time and taking care of minor
maintenance (changing
your A/C filters, changing smoke
detector batteries, etc)! Obviously, we'll take care of
major repairs, like a broken A/C
or hot water heater. |
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How is this Different from
a Lease-Option? |
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Rent-to-Own is nothing
more than
renting a house then buying it later, with the rental security
deposit returned to the renter in the form of a down-payment credit at
closing. There is no explicit linking of the rental
agreement and the purchase agreement, like in a lease-option. The
renter merely expresses intent to buy the property at a later date, and
that the seller expresses intends to sell it to them. However, at any
point during the rental period, the renter may lock-in a purchase price
by signing a purchase contract and putting down earnest money, which is
a non-refundable deposit, credited to the buyer upon buying the
property.
The seller typically gets a larger than average
security deposit, as it is intended to force the renter to build a cash
reserve for use as a down-payment at closing. Additionally, the seller
gets tenants who will take better care of the property
than regular renters, because they are more likely to view the property
as theirs.
The tenant-buyer gets to rent the house until they
are ready to buy it, without losing any money as an option fee.
While
popular in most states, lease options are all-but illegal in Texas.
Texas laws restrict
lease-options to six months and impose extreme fines on the seller for
failure to transfer title to buyer in that time. While this was done to
'protect' buyers from unscrupulous sellers, it effectively outlawed one
of the few home-buying tools available to people who lack the down payment and/or
credit to buy now, but
who anticipate being able to within the next few years. This is why the
rent-to-own program was created. To help people get a house, in spite
of ill-conceived legislation. |
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Encompass
Strategies LLC is a real estate investment company.
©
2008
Encompass Strategies LLC. All Rights Reserved.
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